Amsterdam: Residential property prices rose by approx. 14 percent

Prices continue to rise on Amsterdam’s residential real estate market. In the first quarter of 2018 alone, prices on the market as a whole rose by around 14 percent over the same period in the previous year. One reason for this development is the increasingly scarce availability of properties, particularly at the premium end of the market. “The demand for properties for sale in the top segment is currently twice as high as the level of supply,” saidBarbara van der Grijp, Managing Partner of Engel & Völkers in Amsterdam, explaining: “Rather than selling up, many homeowners are opting to rent out instead, while rentals are becoming an increasingly attractive option for investors too.”

Up to 10.25 million euros for canal houses

The most sought-after locations in Amsterdam are the Canal Ring (Grachtengordel), the Museum Quarter (Museumkwartier) and the Apollo Quarter (Apollobuurt). The highest prices of all are fetched for residential properties along the traditional canals such as the Herengracht, Keizersgracht, and Prinsengracht, and their tributary canals: In the first quarter of 2018, freehold apartments on the Canal Ring cost up to 8,900 euros per square metre. Canal houses changed owners during the same period for as much as 10.25 million euros. The buildings where wealthy merchants and the upper classes once lived now form part of the historical heritage of Amsterdam, which encapsulates for many the characteristic charm of the city. In addition to this traditional appeal, many buyers in the Canal Ring are also drawn by the close proximity to many of the city’s famous sights.

The Canal Ring is located directly in the city centre, while the Museum Quarter and the Apollo Quarter lie to the southwest, in the borough of Amsterdam-Zuid. The name Museum Quarter is derived from the Museum Square (Museumsplein). It forms the heart of this quarter, which is also home to major museums including the Stedelijk Museum, Van Gogh Museum and Rijksmuseum. For buyers, the proximity to these world-famous exhibition buildings and the city centre is just as attractive as the peaceful environs and the pleasant streets. Families and expats in particular are drawn to this neighbourhood, as are clients looking for a second home in Amsterdam. Interest from families often centres on homes with gardens, whereas professionals from abroad tend to prefer luxury apartments ready for immediate occupancy. In the first quarter of 2018, prices per square metre for such apartments were as much as 10,750 euros, while villas with green plots fetched sale prices of up to 5.95 million euros.

The majority of buildings in the Apollo Quarter date back to the 1920s and 1930s. They were built using brick in the architectural style known as the Amsterdam School. The city centre and the business district Zuidas are not far away, and there are good connections to the airport, making the Apollo Quarter popular with international clients, families and single buyers alike. Families are especially drawn by its suburban flair and the comparatively large size of the houses. Prices per square metre for apartments here reached up to 9,900 euros in the first quarter of 2018. Villas in the Apollo Quarter sold for as much as 2.7 million euros.

Outlook: Growing demand from international buyers

Clients from abroad currently make up 16 percent of buyers on Amsterdam’s premium real estate market. Among them, Germans and Brits constitute the largest buyer groups. “We anticipate that the number of expats looking for real estatein Amsterdam will rise further,” said Barbara van der Grijp. Attractive tax regulations are prompting many international companies to set up offices in the Dutch capital. In addition, the European Medicines Agency is due to relocate its headquarters from London to Amsterdam next year. Engel & Völkers estimates that this growth in demand will lead to a further increase in property prices. Price rises can also be expected in good locations such as the districts Jordaan and Oud-West, and the cosmopolitan neighbourhood of De Pijp. An area with particularly strong potential is the business district Zuidas on the southern edge of the city. Large numbers of multinationals are opening offices here, resulting in an increased demand for high-end housing in the surrounding area. “Even though property prices in Amsterdam continue to rise, the overall cost of homes compared to cities like New York or Paris is still relatively moderate,” said Barbara van der Grijp.

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